Investment update as of 14 November 2019:

The shareholder vote for the potential sale of College Mews, Lincoln has concluded.

There was a very high level of shareholder participation, representing 79.4% of shares held.

A large majority of 66.8% voted to proceed with the sale. However, this did not reach the 75% majority required

As a result, College Mews, Lincoln will not be sold.

Trading will recommence on the property at 10am on Friday, 15 November 2019 and the property’s dividend will continue as normal with the next payment being made on 5 December 2019.

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College Mews, Lincoln sale opportunity – shareholder vote

• Acquired on 3 July 2018 for £1,030,000
• Opportunity to sell for £1,200,000, a net capital gain on investor equity of 11%
• Disposal would deliver a total return (including dividends) of 20%
• 75% Shareholder majority vote required to proceed with sale

As a shareholder in College Mews, Lincoln, we are writing to inform you that we have received an unsolicited offer to acquire the property from us for £1,200,000.

This is £100,000 above the property’s September 2019 independent revaluation of £1,100,000. A sale at this price would represent a 16.5% increase on our July 2018 purchase price. After accounting for purchase costs, sales costs, corporation tax on capital gain and the repayment of the mortgage, this delivers a net capital return on equity of 11% to investors who bought shares at the new listing phase. The property has performed well since our purchase, currently paying a dividend yield of 6.7% against the new listing investment cost.

The potential buyer, a locally based investor, has visited the property and made their offer on the basis of their inspection. Given the size and credibility of the offer we have decided to put this before shareholders to give you the opportunity to vote to proceed with a sale or to turn the offer down and continue to hold the property.

The vote will remain open for a period of 2 weeks (closing at 1 pm on Thursday, 14 November), with votes counted on the basis of 1 vote per share held. In order to proceed with the sale we require at least 75% of votes cast to be in favour.

Resale Market trading in the property is suspended and will remain so until the vote is concluded. If shareholders vote to sell the property, trading will remain suspended until the sale is complete; the property’s next dividend will be paid on 5 November as normal and then dividends will be suspended, with accumulated net income being returned to shareholders along with the final distribution of proceeds.

If shareholders vote to accept the offer, we will work toward exchange and completion as soon as possible. This would deliver investors who bought shares at the new listing stage a total return of 20% over a 17 month hold period:

Click here to cast your vote.

All returns calculations are presented before the AUM fee, because (i) the AUM fee has only applied since August 2019, so the impact is immaterial, and (ii) the AUM fee ranges between 1.2% for some investors and 0.2% for others.